The exponential rise in Bitcoin and other cryptocurrencies attracted a number of new traders who embarked on a buying spree - mainly purchasing cryptocurrencies using credit cards.

Following the huge decline in 2018, the top 5 credit card companies have either banned or have announced a ban on cryptocurrency purchases using credit cards.

As a result, late entrants to the rally, who had purchased cryptocurrency using borrowed money and are nursing losses of more than 50 percent will now be forced to square up their positions.

This is likely to result in another round of panic selling, which will shake out the weak hands. These lower levels will attract a new set of investors who believe in the technology and have been waiting to invest at the right opportunity.